"Townsville" remained in Darwin until July 1942, when she was sent to Sydney to begin escort duties off the east coast of Australia.The ship remained until May 1944, and despite being in the heaviest period of Japanese naval activity in Australian waters, only one ship was lost from a "Townsville" convoy; the iron ore transport "Iron Knight" was torpedoed by Japanese submarine "I-21" on 8 February 1943.